Achieving the world's climate goals requires vast investment. The Economist magazine estimates US$8 trillion is needed over the remainder of this decade in renewable energy and associated infrastructure such as battery storage technology and transmission lines. As reported by IJInvestor, 14% of capital raised by infrastructure funds in the past five years was for renewables projects, highlighting the interest of the PE industry in supporting the energy transition.
Decarbonisation
Governments and industries are racing to unleash the potential of digitalisation, such as artificial intelligence (AI) and the Internet of Things (IoT) to raise productivity. The World Economic Forum predicts that, by 2025, the AI and IoT markets will reach US$4.5 trillion and US$15 trillion respectively. Digitalisation requires significant physical infrastructure to support it, from subsea fibre optic cables to data centres, creating further investment opportunities.
Digitisation
The economic impacts of global events such as the Covid-19 pandemic, the Russia-Ukraine war and the conflict in the Middle East, have reinforced the need for many industries to diversify their supply chains, leading to rising demand for the construction of capital-intensive projects such as factories and transport infrastructure.
Diversification